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PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
PANKAJ JAIN
United India Insurance Company Ltd. – Appellant
Versus
Aagosh Polyfoams Pvt. Ltd. – Respondent
JUDGMENT :
Pankaj Jain, J.
By way of instant judgment, I intend to dispose off the aforesaid captioned two appeals arising out of the same judgment. With the consent of learned counsel for the parties, RSA No.146 of 2017 is taken as a lead case.
2. Defendant is in second appeal.
3. Plaintiff filed suit for recovery of Rs.1 crore on account of insurance claim. As per plaintiff it is a company registered under the Companies Act, 1956. It is engaged in manufacturing Polyurethane Foam since 1981. There was a fire in the premises of the plaintiff on 20.01.1999. The stocks including raw materials (chemical) finished goods, semi-finished goods and packing materials, plant and machinery and building of the plaintiff company got insured with the appellant vide policy dated 31.12.1999. Cover note was also issued on the same day after the officials of the defendant-insurance company inspected the premises in question and verified the stocks, plant and machinery, and condition of the building. Plaintiff claims to have paid premium of Rs.57,606/-. As per the cover note, plant and machinery of the plaintiff company was valued at Rs.30 lacs, building at Rs.45 lacs and stocks at Rs.50 lacs. The afores
The burden of proof in insurance claims lies with the insurer to establish policy violations, and claims cannot be repudiated without substantial evidence supporting such breaches.
Insurers must comply with statutory obligations of disclosure; failure to do so prevents repudiation of claims based on misrepresentations in policy applications.
The duty to disclose material facts runs throughout the continuance of the contract of insurance and it is binding on both parties to the contract.
Point of Law : No fault can be found with the repudiation and the order of Ombudsman affirming the said repudiation and disallowing the claim. [Para 13]
1) Per Sec. 45 of Insurance Act, claim can be repudiated, if it is proved that the assured knowingly and fraudulently suppressed the material facts.2) Contractual duty so imposed on the Insured is su....
(1) Competent Authority repudiated the Claim on the ground of the Claim having been grossly inflated by fraudulent means.(2) Repudiation made by the Insurance Co. cannot be faulted.
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